I got free stocks through Webull's promotion

[judyme]

No, it didn't give me any kind of question like that. There was no question showing so I wasn't quite sure what it was asking me. I just knew it was regarding those free stocks because of the Cost Basis = $0 so I did a search online and it brought me back to this community topic/thread.

The first time, I got those review issues, I tried to hit  "Continue" or whatever the button at the bottom of the screen says because the info was correct but it brought me right back to those review questions.

So then I clicked on the info topic for "Cost Basis" above that line which brought up the side bar and part of that dialog said something like, "Cost Basis maybe be $0 but will help you enter that info later..." but like I said it just loops back around again. It didn't help me enter it "later."  (I'm sorry, I can't give exact wording because TT has the tax prep and the community as separate logins and I'm not logged into that anymore.)

Anyway, thank you and everyone for trying to assist.

[DaveF1006]

Try one last thing. enter $1 in the cost basis amount and see if this clears the error.  let us know if this works.

@judyme 

[DL94]

Hello,

I have a related question on how to report 3 promotional stocks I received from Webull for free in 2022. Webull's form 1099-MISC reports 0 in line 3 "Other Income." The statement from the corresponding transaction shows that I bought the stocks for $0.00001. However, the actual market price of the stocks when they were given to me was a few dollars (~$1 for one of them and ~$5 for the other couple). This help article from Webull's website states that free stock will be reported in Form 1099-B once it is sold with a $0 cost basis. I still do not sell the stocks.

Does this mean I do NOT have to report the gifted stocks as "other income" in my 2022 taxes? In other words, once I sell them, I will report the entirety of the proceeds as capital gain.

Is this correct? Is Webull reporting things correctly?

[KrisD15]

That is correct. The stock was given to you as a promotion so your basis is 0. 

Whatever you sell it for will be gain. 

If you hold it for 1 year or less it will be Short-term. 

Longer than 1 year is Long-term. 

[DL94]

Thanks, Kris!